Just two months ago, housing prices in Brisbane were 9% below peak. Today, they are 6% below peak.
So what’s driving this growth in demand for Brisbane properties, and is Brisbane a good investment option right now?
It’s predicted that these low prices for investment properties will shoot up by February next year, so if you’re reading this, you may be thinking about investing in Brisbane before then.
Right now, Brisbane has some amazing investment properties that will deliver high returns, and PropHero customers are already seeing amazing capital gains surpassing $150,000 in 18 months. This is massive!
In this post, we dive a little more into why Brisbane is such an ideal location for property investors.
The facts about Brisbane
Brisbane offers property investors longer term capital gains. Some PropHero clients have seen an increase in capital gains of $124,000 in just 24 months, and others have seen an increase in capital gains of $62,000 in just 9 months.
Brisbane properties have outperformed the market without a doubt. This is because Brisbane properties offer:
- Both high yield and strong longer term capital gains
- The demand for occupancy is high due to stable rent prices
- There is a boom in the economy and strong infrastructure development
- Bank valuation of properties purchased in 2022 17% for some investors
Is Brisbane right for you?
Brisbane is the location for investors looking for longer term capital growth There are a range of different strategies when it comes to investing in property, and general investors fall into two buckets:
- Those that want to increase short term, cashflow (they’ll want a higher yield)
- Those that want to grow long term capital wealth (they’ll want to increase capital gains)
Brisbane is the perfect location for investors looking to grow long term capital wealth. You can purchase a property right now, in the market, that’s 6% below peak prices.
Townhouses are growing in demand
Brisbane has seen a demand in townhouses over the last year, but currently the prices for Townhouses are still much lower than standalone homes. Many investors have been snapping up Townhouses in Brisbane for as little as $250,000 and seeing rental yields of 6.3%.
This trend won’t last for long though. It is predicted that the prices of Townhouses will increase at the beginning of 2024 as well as the supply begins to exhaust the demand. If you want to check out our other predictions for hottest areas to invest in right now, head to this post.
Investor Success Story #1
One PropHero client bought a property in Brisbane for only $451,000 in September 2021. At the time, the bank said we paid $25,000 below market price. This property needed some tidying, so we organised a light renovation for our client worth just above $10,000 (painting, carpet, gardening).
Fast forward to today and the property is now worth $585,000 according to the Commonwealth Bank of Australia. That’s a $134,000 capital growth in just 2 years. The rent the generate is currently $450 per week, which means they are getting 5.2% yield
We also estimate the market rent for this property is now $490 per week, which means they should get a 5.6% yield when they renew the lease, which is massive for Brisbane, where normal investments typically only get you 4% yield.
Investor Success Story #2
Another client bought a Brisbane property for only $620,000 in late 2021. This place was in fantastic condition and didn’t need to be renovated.
A year and a half later, the bank valued their property at $792,000. This means the price increased by $172,000 in a short 18 months. In addition to this, the rent on this property is $600 per week, which gave our client a 5.0% yield.
We have so many success stories of clients that have purchased in Brisbane and have seen similar growth. Check out our library of success stories right here.
Should you invest in a Brisbane property?
In short, investing in Brisbane right now is a great option. You’ll be able to snag a property for 6% less than peak prices. The catch? Property prices are set to increase by February 2024. So now is the time to invest in Brisbane.
If your goal is to invest in a property that delivers longer term capital gains, and rental yield that drives high shorten cash flow is less of a priority to you, then Brisbane is for you!
Book in a free strategy session with our team, and they can help you find and purchase the right property in Brisbane to help you meet your goals and budget.